MyLeave: construction industry long service leave scheme.
Employees in the construction industry have access to a portable long service leave Scheme, funded by a compulsory levy on employers. Because the Scheme is “portable”, employees can take their long service leave benefits with them as they move from one workplace to another, accruing leave over the lifetime of their construction industry career.
If you’re an employer with workers in the construction industry, you may be required by law to register in this Scheme, as established under the Construction Industry Portable Paid Long Service Leave Act 1985 (referred to as “the Act”). If you are required by law — defined by the Act — to register for the Scheme and do not, penalties apply.
How do you know if you need to register for the Scheme?
Ask yourself these key questions:
- Are you an employer or labour hire agency that employs workers in the construction industry?
- Do you employ workers under a contract of service or apprenticeship in a classification of work referred to in this list of industrial instruments?
- Do you employ individual subcontractors hired for labour, paid by the day or hour?
If you answered “yes” to one or more, it’s important you know your obligations to contribute to the Construction Industry Long Service Leave Scheme. If you’re not sure whether you need to register for the Scheme, you can contact MyLeave who will advise you on the right option.
Registering for the Scheme.
Employers must register with MyLeave and are required to pay long service leave contributions to MyLeave every three months. This levy covers the cost of administering the Scheme and the payment of long service leave to construction industry employees.
Failure to register and pay contributions can result in fines and surcharges being applied to amounts owed. To register, complete and submit an Employer Registration Application with MyLeave. Once processed and accepted, you’ll receive a Registration Certificate confirming registration.
What happens if you don’t register?
As defined by the Act, registration is compulsory by law. Failure to do so and pay contributions can result in fines and surcharges being applied to amounts owed.
How compulsory payments work.
Once you’re in the Scheme, you’ll receive a Return every three months that covers the previous three-monthly period. The periods end in March, June, September and December each year. This Return must be completed and submitted with payment to MyLeave within 15 days after the end of each period.
The form must include:
- The names of employees during the three-monthly period in the construction industry.
- Details of days worked in the construction industry.
- The amount paid as ordinary pay to employees.
More on ordinary pay.
This is where it gets tricky. The ordinary pay for reportable Service Days will vary depending on if the worker is entitled to paid leave or not…
For workers entitled to paid leave, ordinary pay means the rate of pay to which the person is entitled for leave (other than long service leave) to which the person is entitled. Ordinary pay does not include annual leave loading but does include other amounts such as rental allowance, utility allowance, living away from home allowance etc, if these allowances are due to a worker when on paid leave.
When a worker is not entitled to paid leave (other than long service leave), their ordinary pay is the rate of pay to which they’re entitled for ordinary hours of work. For example, the ordinary rate for casuals will include casual loading, other applicable allowances, and may include weekend work.
If you’re not sure whether your employee is actually an employee or a contractor (as defined by MyLeave for MyLeave purposes), see these guidelines.
Need help?
If you're unsure whether you need to make payments to MyLeave for your workers, or if you need help setting it up and making payments, contact us.
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